Comparison Between SBI Home Loans And HDFC Home Loans

Home loan is designed to help you acquire the dream home you wished to buy. Home Loan is finalized by individuals after considering the home loan interest. HDFC Home Loans or SBI Home Loans or any other home loan from any bank is taken for purchase or construction of a new house/flat, Purchase an existing (old) house/flat, Extension, repair, renovation or alteration of a house/flat or purchase a plot meant for construction of a dwelling unit. The Home loan interest differs from banks to banks also depends on factors like loan amount, tenure, type of home loan rates (fixed home loan rate or floating home loan rate) etc. Also to get HDFC Home Loans or SBI Home Loans or any other bank’s home loan there is certain eligibility criteria. Also there are factors like repayment capacity, age, educational qualification, stability and continuity of income, number of dependents, co-applicant income, assets, liabilities, saving habits and more.
With home loan rates taken into consideration let’s compare two banks with regards to home loan, as SBI home loans and HDFC home loans.

Image
SBI Home Loans come to you on the solid foundation of trust and transparency built in the tradition of State Bank of India. SBI Home Loan – For Loan amount upto Rs. 30 Lacs…. (w.e.f. 01.July.2009)
• SBI Home Loan or Home loan rate during the first year (i.e. till first anniversary date from the date of first disbursement) is fixed at 8% p.a.
• SBI Home Loan or Home Loan rate during next two years is fixed at 8.5% p. a.
• SBI Home Loan or Home Loan rate after three years may be Fixed or Floating as per the borrower’s choice made at the time of sanction. If floating home loan rate option is chosen, then the home loan rates will be 2.75% below SBAR (State Bank Advance Rate). If fixed home loan rate option is chosen, then the home loan rates will be 1.25% below SBAR prevailing on the third anniversary date from the date of first disbursement of SBI home loan and shall have a reset frequency of 5 years from the third anniversary date of the SBI home loan. Fixed interest shall be subject to force-majeure clause.
• For SBI home Loan amount above 30 lacs SBI Home Loan rates is fixed at 8% p.a. and 9% p.a. for first and second years of taking the SBI Home Loan, respectively and for third year if floating home loan rates option is chosen, then the home loan rate will be 1.75% below SBAR . If fixed home loan rate option is chosen, then the home loan rate will be 0.75% below SBAR.

Image
HDFC Home Loans
HDFC’s objective, from the beginning, has been to enhance residential housing stock and promote home ownership by way of HDFC Home loans.
HDFC home loans or floating home loan rates for new customers are
• 9.75 per cent for HDFC home loans up to Rs 30 lakhs.
• 10.75 per cent for HDFC home loans more than 30 lakhs.

The Home loan interest is very important in determining the uptake of this home loan by the masses. The home loan interest has come down allowing many individuals to take the plunge. According measures are taken by government and also other financial institutions including banks to further reduce the home loan interest thus encouraging more and more people to take home loan. From the above table it is seen that both the banks HDFC bank and SBI bank offer similar home loan interest with regards to HDFC Home Loans and SBI Home Loans .Some banks also try to gain more customers by prompting incentives in the way, waive off the charges for processing and documentation, for certain category of housing finance loans.

Please consider and think about before you buy a home.




Funny how those who worry about greenhouse gas emissions ignore their own biggest contributions

This has long bugged, me but Greg Mankiw's op-ed in today's NYT prompted me to complain about it again.  I have no complaint about his actual thesis, which was the basic, obviously correct economics:  A carbon tax is a much better way to discourage people from causing so much GHG emission (assuming we want to do that) than is the hodgepodge of often inefficient regulations and incentives -- especially if the tax is offset by tax cuts that are targeted at making the cost impact neutral for the average person.  But what bugged me was his musing about what he might personally do to reduce his own emissions.

As is typical for people discussing this, he mentioned driving a more fuel efficient car, adjusting his thermostat, solar panels, and eating locally.  To his credit, he avoided mentioning totally useless and counterproductive gestures like recycling.  Also to his credit, he actually included one of the three biggest things someone can do, three things that are generally ignored by the typical bourgeois self-congratulatory worriers about climate change.  Most important, of course, he was advocating an efficient alternative to hodgepodge and voluntary action that would make the benefits of avoiding particular consumption proportional to the costs of emissions impact of it, solving this problem:  With a carbon tax, the costs would be internalized for everything, including those actions that are typically ignored.  Thus this screed should be seen as directed at the chattering enviro types, not at Mankiw.

It is pretty clear that there are four changes that matter for reducing the carbon emissions you cause that you can do while still maintaining a basic modern lifestyle:  don't fly on airplanes, live in an urban apartment, don't eat meat, and minimize gasoline use.  Everything else is just a rounding error.  Of course none of these are absolutes -- the closer you are to the minimum the less impact.

The funny thing is, the activists who push this topic -- typically upper class, though not 1%-ers -- tend to mention only the last of these, and then only in terms of what to drive, which is solidly down in fourth place.  Why do they conveniently ignore the actions they could personally take that matter a lot more?  The most obvious answer is because they want everyone else to make the sacrifices.  Their only "sacrifice" is driving a Prius and maybe installing solar panels, which are really visible status symbols for them, points of pride that make them happier, rather than sacrifices.  Those actions are kind of like giving up smoking for Lent because you want to quit smoking; a sacrifice is something that makes you worse off, not better.  It much more appealing to offer gestures that actually make you happier and reserve the unhappiness for others.  So, for example, wealthy climate change activists try to force everyone to pay a lot more for electricity, a cost that they personally can just shrug off or even consider a net gain because it makes them happy, but that is painful for the average American or Canadian suffering that wealth shock (to say nothing of the average Chinese). 

Mankiw did not mention living in an urban apartment per se, but he did cite both of its advantages compared to living in a suburban house (as most people I know who chatter about this seem to):  You are closer to where you want to be so you drive far less (which matters a lot more than what vehicle you drive, especially if you can avoid having a private car at all) and the space is smaller (though he only mentioned the reduced climate control costs and not the important costs of building the structure itself and cultivating a grass monoculture in space that could be growing naturally).

He did not, however, mention not eating meat or minimizing how much you eat.  This action is something that most everyone can make without massively disrupting their lives, unlike the others (move to the city, minimizing transport), and is clearly the most effective GHG reduction step that fits that description.  Yet it pretty much never gets mentioned by the enviros as part of their agenda.  Perhaps this is because they do not want to be staring that choice in the face:  There is something huge that any meat-eater can personally do tomorrow, just by deciding to do it.  If they admit that, they have to admit that is true then they cannot keep pretending to themselves that they are willing to personally sacrifice for their cause.

Most notably, Mankiw did not mention what I am sure is his personal biggest contribution to GHG emissions, flying.  How many miles do you have to fly in a year before the total contribution from that equals the sum of all your other consumption (not just driving and household utilities, but the energy impacts the material goods you consume too)?  Don't quote me on this because I am working from memory, but I recall that it is in the order of 25,000.  So for anyone who qualifies for even "silver" level frequent flyer status, that flying is more than half your GHG contribution for the year.  I would be surprised if Mankiw flies less than double that. 

Avoiding flying (or merely flying less), for the class of people who fly on airplanes, dwarfs anything else any of us can do to personally reduce emissions.  This also means that a carbon emissions tax would fall most heavily on plane tickets, where it should.  We could let this create the right financial incentive rather than relying on people who care about this issue to voluntarily avoid flying -- since observation suggests that they do not voluntarily avoid flying.  For the class of people who do not hesitate to hop on a plane because they just want to be in another city for a couple of days, foregoing that option -- and thereby reducing their emissions more than everything else they can do, combined -- is a real sacrifice.  So they decide it is better to just stick to buying those recycling bins, solar panels, and a cute cars (and put a wind turbine bumper sticker on them, of course).  That way when someone drives by their 3500 square foot house while they are off visiting Paris, there will be no missing the message about just how wonderfully Green they are.

Models v. Mechanisms at FDA Center for Tobacco Products

Observed coincidences occur far more often than chance would suggest because we look for them and define our list of what would constitute an interesting coincidence based on what actually occurred (we have no intuition for just how huge the denominator is).  I know that.  Still, I find it pretty remarkable that for the last couple of days I have been trying to nail down exactly how to explain what is missing from the behavioral modeling by FDA CTP, and then discovered in my morning econoblogosphere reading, the answer I needed seems to be the topic of the hour.

Yesterday I posted some advice to FDA CTP about the need to understand social science (mainly economics) in their modeling of behavior. There is relatively little economics that needs to be considered in traditional FDA missions, and that which is needed is relatively simple.  But regulations that are intended to affect preferences about a freely-chosen consumer product where preferences vary across the population (i.e., like tobacco products, in contrast with medicines or food safety) are all about economics.  The failure to include explicit economic analysis in the recent report on the possibility of banning menthol cigarettes illustrated the problems, both scientific and ethical.

But if you were to suggest to the people working in the FDA orbit that they do not really have a model of people's choices about tobacco products (as I have argued), they would probably reply that they do have models.  Several of them.  (For those who are familiar with this field I am, of course, talking about Levy, Mendez, Environ.  For those not familiar, that should present no obstacle to understanding this post -- just know that I am talking about a handful of well-known specifics.)

Ok, there are models.  But there is something fundamentally wrong with them.  They do not offer us any reason to believe in what they say will occur at the micro level (that is, why each individual person whose actions, collectively, result in the outcome, will do what they suggest they will do).  What I mean is that they tell us things like "if X% fewer people start smoking each year", say, due to a menthol ban, "then this graph shows the number of smokers in the future, which is lower than current trends by Y" (if they fill in other information and make a bunch of other assumptions about what is happening, of course).  But as for why X% fewer people would start smoking, there is nothing at all.  There is just the number.

I have criticized these as being more like calculators than models.  If a population starts at 1 and doubles, every period then the number after n periods is 2^n.  But it is hard to call the equation "2^n" a model.  Similarly, I argued, the preferred "models" used by the tobacco policy inner circle are just more complicated equations.

I learned, however, that this point was not widely convincing based on sociological empiricism -- i.e., I tried to make the point to people and did not have much success.  I realized perhaps why this was based on my blog reading from this morning:  I was using the wrong words to make my point.  It is not that these are not models; any calculation, no matter how simple, can be called a model if it is representing a worldly phenomenon in some useful way (even that lowly 2^n).  The problem with these models, and the reason they failed as legitimate models, is the lack of mechanism.

A model uses numbers and equations to show how one variable/construct/point-in-time/etc. affects others.  But the model may not capture why a particular effect occurs (the mechanism), as with that X% reduction in smoking initiation.  In such cases, it is really just answering a hypothetical question ("if X were true, then Y") rather than making real predictions ("X appears to be true, therefore Y").  But the models that would be useful for FDA purposes are ones that tell us "therefore" not just "if...then".  Of course, every model is going to have some simplified or hypothetical elements (if there are no simplifications it is not a model, it is reality) and, once again, there are no bright lines since the mechanisms generally are abstractions (i.e., models) in themselves.  But for a model to offer predictions that do not just result from hypothetical inputs, there has to be some "why" built into it.

It seems that the problem is that these models have been developed in a world where the only familiar social science is epidemiology.  Epidemiology usually fails as a social science, and as a science more generally, because there is very little attention paid to mechanisms.  That it fails as a social science is fairly easy to explain: most people doing it do not realize they are engaging in social science, and most people teaching it have no background in social science.  They think they are just doing medical trials.  Sometimes this is literally true, of course, and sometimes the observational epidemiology is legitimately an attempt to substitute for medical trials.  But as soon as what is being studied is not purely biological, and involves people as people, not just as organisms, it is social science.  Medical trials are easy because either the mechanism is obvious or it does not matter -- e.g., this drug makes cancer go away, and we probably have a guess about why, but that guess does not matter because the mechanism does not matter to the epidemiology (though obviously it does for the drug development process).

The failure to be good science at all is less easy to explain or defend.  For almost 15 years, mechanism-oriented methods have been developed and taught (in the few good epidemiology departments).  These tend to be pretty simple, just boxes and arrows that show what is causing what, but that is most of what you need.  Unfortunately these are (a) seldom used at all and (b) almost exclusively used just for identifying confounders.  The latter is useful, of course, and doing it is far better than not doing it.  But what is missing is use of these mechanistic models to address questions like "if X is really causing Y by affecting Z, then I should be able to observe not just an association between X and Y, but also..."  Such scientific hypothesis testing is close to completely absent from epidemiology.  Instead, mechanisms in epidemiology exist entirely in the untested conclusion statements.  You have seen it: An association is observed and there is a discussion of how X must be to be causing Y as a result of Z, or whatever, but whether that really seems to be true is never addressed scientifically.  It is worth reiterating:  In epidemiology, mechanisms live almost entirely in the conclusions and not in the science.

So circling back to the question of tobacco behavior modeling, when the models are developed in the tradition of epidemiology, it is little wonder that there is no mechanism.  The "why" of what happens when a variable changes is not part of epidemiology, and so not part of the models.  It is just assumed that if the effects of a particular variable changing were observed in the past -- or more likely, merely if there was just some association observed in the past, with no effects of changes observed -- then that same association will still occur if an intervention is imposed (e.g., menthol is banned).  But there is usually no reason to believe that, and indeed, often a lot of reason to not believe it.  To take an extreme case, one of the popular models assumes that without menthol, the rate of smoking initiation would drop by the rate at which smoking is initiated with menthol cigarettes.  Put a little more simply, this basically is the assumption is that everyone who would have initiated with menthol will therefore never smoke (it is even a bit worse than that because it is based on past associations which might themselves change).  I suspect I do not need to explain why the implicit mechanism about people choosing to initiate smoking menthol cigarettes is rather absurd.  The absurdity of that seems unfathomable unless you recognize the mechanism-free mindset: "all we know [the mindset goes] is the association we observed before, so we just have to assume that association will always exist".

FDA on menthol cigarettes, some suggestions for research methods

The U.S. FDA is probably the most respected and influential medical research organization in the world.  Sure they have their hiccups and there are criticisms (many legitimate, many not) about the science and the choices about what risks to take (historically entirely in the direction of them being too quick to keep a potentially useful drug off of the market, more recently in both directions).  But all in all, it is hard to imagine engineering an institution that does much better.

But tobacco controllers (including a former head of FDA during his tenure) and their pet congressmen got the bright idea of adding a category of non-medical consumer goods to FDA's scientific purview.  To these non-scientists, it probably seemed that there was no contradiction here.  Science is science, right?  Clinical trials of medicines, monitoring food safety, consumer preferences, social forces, climate change research, isolating the Higgs boson -- if they are good at the first two, and experienced in the related ethical questions, then they must be able to do the rest, right?

Um, no.

It is clear that the FDA scientists who have been asked to look at tobacco products are trying, and it is equally clear they are frustrated.  Their latest report on menthol in cigarettes and the predicted effects of banning it [I got it here but that link seems to not work now], offers an opportunity for some unsolicited advice.  After I collect comments and my thoughts, I might include some of it as a public comment, [UPDATE: link fixed] which they are currently soliciting.

Their evaluation concludes that there is no measurable difference in the biological risk between menthol and non-menthol cigarettes (keeping the quantity of exposure constant).  This is based on research that FDA is pretty good at; it is not quite the same as their core competencies, medical trials and safety testing, but in the neighborhood certainly.

But the crux of the decision about whether to ban menthol is presented in terms of economics.  Unfortunately they do not say this.  This is presumably because economics -- the relevant science when you are looking at consumer choices  -- has never been part of what FDA does.  Drugs and medical devices are evaluated based on people who "need" them and are generally assigned by gatekeeper rather than chosen, so there is limited need to consider economics.  To the extent that economics is considered, it is the rump economics of "cost-effectiveness" and "quality-of-life" measures, which are definitely useful and nontrivial, but only a bit of the picture.  The food side is rather closer to normal consumer goods, but the focus is still on what everyone "needs" (are not willing to give up at any plausible cost), like non-infectious food.  When legitimate economic questions do come up (e.g., some people prefer to be able to consume raw dairy products, even though they are judged not safe enough by the simple bright-line standards), the system has no mechanism for balancing competing preferences, a hint of the challenge in regulating tobacco products.

It is natural that there is no historical capacity to do much economics within FDA.  I would argue that this is the biggest problem the normative side (i.e., ethics -- assessing what is the right thing to do to make people better off), though selling that message is a tough fight.  But it is also a problem on the positive side (assessing how the world works when individual free choices are involved), which ought not to be too tough to sell.  Understanding consumer choices, and being open and explicit about the science, really should be part of the Center for Tobacco Products.

The specific economic question at hand is the effect of menthol on the number of people who choose to smoke, the quantity they choose to smoke, and whether they choose to stop smoking.  These are all economic questions, and when someone tries to address them ad hoc, using epidemiology rather than welfare economics, it does not work out so well.  Indeed, even the description of the question at hand, with the key word "choose" in it, defies the standard narrow medicalized method of looking at products (and does not seem to appear at all in the FDA report, despite how crucial the concept is).

The questions being asked are in the form of "whether" -- e.g., is there likely to be more smoking if menthol is available -- rather than "how much".  But a tiny bit of economics reveals that the "whether" question is like asking "does this object have a weight" rather than "how much does it weigh".  Of course the availability of a flavor that some people like leads to more product use, and therefore its elimination would reduce how much people like the product.  Somewhere out there is someone who is barely on the positive side of indifferent between smoking and not, and very much likes menthol.  Remove the availability of menthol and he would not smoke.

(Notice that I am avoiding the question of implementation here, and simply positing the "removal" outcome.  Merely banning menthol cigarettes rather than magically removing them from the world creates all kinds of interesting complications about black markets and do-it-yourself mentholation, which is quite easy.  I will come back to that in a later post.)

The "how much" question is quite a bit more difficult to answer.  To have any hope of making a useful prediction, it is critical to understand what is going on:  people are using a product because they like it better than its close substitute (nonmenthol cigarettes), most of them probably prefer the substitute to abstinence, some of them like their product enough that they would defy the law, etc.  Without these economic points, it is difficult to imagine making a useful prediction.  Indeed, if you look at the models that have been used for prediction, they are clearly based on premises that are indefensible but probably the only premises that someone can come up with if they ignore economics.

Some consist of assuming that any additional use or initiation of cigarettes that is associated with choosing menthol (i.e., smoking rates are higher in subpopulations that use menthol more often) is causal, and thus without menthol the rate would drop to the average.  The economics shows that while this outcome is in the plausible range, it would be mere luck if it really turned out to be right because the basis for the claim does not actually support the claim.  Which is to say, the prediction has no validity because the premise of it is clearly wrong.  It actually gets worse than that, with some of the modeling going so far as to predict that all consumers of menthol cigarettes would be abstinent if menthol were not available, which is not even in the plausible range of values.  (No, I am not kidding -- one of the most cited predictions about the effect of banning menthol is based on this premise.)

Some of the most dramatic errors in the history of science, to say nothing of incorrect claims you see in the news today, result from confusing statistics with mechanism.  That is, researchers who do not know why something is happening (e.g., atomic theory has not yet been discovered so they have no idea why samples of pure elements weigh what they do, to take a classic historical example; or they seem to not realize that people make choices based on preference, to take the example of tobacco control industry researchers) sometimes go to great lengths to make measurements.  But when they try to interpret the observations without understanding the underlying phenomenon, and basically just assume that the measurements are the phenomenon (an example of which is assuming that all observed association is causal), then whether they are right becomes just a matter of luck.

As I mentioned, the other problem with not understanding the underlying mechanism when dealing with worldly questions is that wrong (in the sense of accuracy) can also be wrong (in the sense of unethical).  When tobacco control activists hide the phenomenon of people's preferences, choices, and happiness behind naive statistics, they avoid having to admit that they are a special interest group trying to impose a narrow "moral" view.  Our nation's government is not a special interest group and generally does a pretty good job of resisting imposing narrow moral views on the citizens (thank you, James Madison et al.!).  But if FDA research ignores the economics, it tends to prevent decision-makers from realizing they are making ethical, not technical, decisions.  (And it allows those who know they are imposing narrow "moral" views to pretend they are not doing so.)

Banning menthol would serve only one purpose: intentionally lowering the welfare of people who currently choose a particular product.  As soon as you express the economic situation in economic terms, this becomes immediately apparent.  So, is that justified by the (legitimately predicted) benefits it would produce?  Is such an action by a for-the-people government ever justified?  Do smokers deserve to have their welfare lowered?  None of these questions are answered by economics or any other science, but economics has the advantage of forcing a recognition that those are the questions that need to be addressed.  Anyone who suggests that the question "should we ban menthol cigarettes" can be answered scientifically, rather than ethically, is doing the wrong science.

Finally, as a comparatively minor aside about how to do social science, I note that the first paragraph of the FDA report makes a claim about the portion of the US cigarette market that is menthol, citing it to a 2004 paper.  2004??!  Folks, social science does not work that way.  People who are used to dealing with biology and other sciences that study phenomena that do not change much over time get into the habit of ignoring when a measurement was made.  This is a mistake even then, but it is a fatal error when dealing with social science -- just think about how much has changed in the tobacco product markets in the last decade.  An economist wanting to make such a summary claim would either find a more recent estimate, make a rough general claim without citation (making clear that the exact number is not known to the author but that it does not matter much), or look at the most recent statistics themselves and do the calculation.  Part of the problem is that people who are used to dealing with only one area of science, medical research, get the mistaken impression that all or most useful information is contained in journal articles.  That is clearly not the case in social science, where constantly updated statistics, working papers, and the blogosphere generally contain much better current information and thinking.  Indeed, as with many serious sciences, when an article appears in a good journal it is more like an archiving and awarding of a trophy, and is not really the publication, since anything worth reading has already been circulating long before the final version is etched in stone.  These are just a few of the things that FDA researchers need to understand now that they have entered the world of studying people as people, and not just as biological agents.

[More on this theme in the next post.]

My take on the recent UK NICE Guidance on tobacco harm reduction

The following is my take on the recent UK National Institute for Health Care Excellence (NICE) Guidance on “Tobacco: harm-reduction [sic] approaches to smoking”.  (I know I am a bit late to this, but I kept interrupting my work on it for other projects.  There was a lot in the Guidance to dissect.)

Background
For those not familiar, NICE functions vaguely like the USA’s Institute of Medicine – in terms of function it is basically a governmental think-tank, but is somewhatindependent of the political process in terms of conducting analysis.  This means that the Guidance does not create or even explicitly propose government policy action, but it does carry the weight of government imprimatur (for those who consider that to be a good thing).  As for the Guidance, it is not actually about tobacco harm reduction (THR) in general as the name implies, but rather is specifically recommendations about encouraging the use of medicine-like products for THR as partial or total substitutes for smoking.

NICE apparently considers this to be important – rather more important that it really is judging from their (grossly inaccurate) headline claim that this report is “a world first for people who cannot stop smoking in one step”.  I will resist discussing the implications of this narrow view of many people working for governments (namely, that something did not happen until they did it) and their apparent obliviousness to what is going on in the real world.  In reality, the Guidance is approximately the one thousandth statement recommending strategies for helping smokers who do not choose to stop smoking by just quitting.  But especially baffling is that this is not even the first such statement by the UK government:  The MHRA (the unit of government that controls sales of medicines, like the CDER (drug) branch of the US FDA), which actually makes binding policy rather than just recommendations, has already created a category of medicines for THR and has approved one product in the category (at least two others are under review).

Though far short of the inaccurate self-promoting rhetoric, the Guidance does have the potential to be somewhat influential.  Much of the reaction to the Guidance from the real public health community (i.e., THR supporters) has been rather negative, but I tend to differ because I think that the real impact of the negative aspects (which definitely do exist) will be trivial and short-lived, while the positive implications will have legs.

The main negative is that the guidance is specifically about the use of “licensed nicotine-containing products” – that is, pharmaceutical industry “NRT” products that are designed as abstinence-promotion medicines and not as fully-satisfying consumer products.  The authors were clearly so desperately worried that someone might interpret their recommendations as applying to all roughly-equally-low-risk products, like unlicensed e-cigarettes or (gasp!) snus, that they included the phrase “licensed nicotine-containing products” approximately once in every 40 words.  The problem with that plan (and the reason this is not such bad news) is that many people who read and make use of this are not stupid.  Many readers will recognize that everything they say applies equally to all of these products.  Indeed, the Guidance authors make basically no affirmative argument to the contrary.  (They throw in a few lies about risks from snus, but they are so buried deep in the research background section that they are unlikely to be noticed.)

You could imagine a document like this including a tedious argument that there is something so different about non-“licensed” products that the recommendations cannot be extrapolated to them.  But it does not include that.  Perhaps the authors actively wanted to avoid such a claim.  Perhaps they just realized they would look like idiots if they tried to argue obviously incorrect claims.  One might even conclude that some of the authors disagreed with the “licensed products only” spirit of this initiative and managed to keep the document implicitly positive about THR in general despite several of the authors clearly opposing this.

Thus, the Guidance is good news merely because it has positive things to say about one (albeit relatively unimportant) approach to THR.  And moreover, whatever the reason why, it was not actively anti-THR for other products, and therefore it will contribute to the promotion of THR in general, even if some of those in charge of the process might wish otherwise.

It is worth noting that there are a couple of e-cigarette-type products in the application pipeline for the aforementioned MHRA approval, and the authors of the Guidance knew that.  Thus, they knew that they were implicitly recommending THR using (some) e-cigarettes.  Of course, right after the release of the Guidance, MHRA declared that they planned to regulate all e-cigarettes as medicines, requiring them to meet the licensing requirements (which almost none could meet).  But it is clear from conversations I had that at least some of the authors of the Guidance did not expect that this would be MHRA’s move, so not much can be read into this juxtaposition.

Recommendations in the Guidance
So, finally getting to the substance, what does the Guidance recommend?  It recommends everyone involved in smoking cessation (government agencies, medics, specialty clinics, etc.) provide smokers with information about the benefits of cutting down and of substitution.  These do not appear until after the reader wades through the usual recommendations that they tell smokers the shocking news that smoking is bad for you and such, but that is just boilerplate.  The substance is the recommendations about a THR approach.  The same actors are supposed to tell people about the licensed products themselves.  But unless the clinicians et al. lie about the more consumer-friendly products – which, importantly, NICE clearly does not ask them to do – then people should be able to extrapolate.  Indeed we can hope that anyone working with real live human smokers that they care about, rather than just publishing information, will go ahead and actively recommend e-cigarettes (or even semi-black market snus). 

Of course, we will not know what private conversations clinicians will have with people.  But the Guidance also calls for those who create self-help information to incorporate these recommendations.  Will those who did not already endorse THR in their writings start doing so now?  It is not clear that the Guidance will actually have that kind of impact, but at least we will be able to observe this if it happens, unlike the personal conversations. 

The word “reassure” appears a lot in the Guidance, as in “Reassure them that it is better to use these products and reduce the amount they smoke than to continue smoking at their current level.”  This is a nice touch, acknowledging that the anti-tobacco extremists’ years of efforts to mislead people into believing there are no benefits from THR necessitates an affirmative effort to undo.  I am sure this really grated on those members of the authorship committee who are part of the extremist clique and personally contributed to the disinformation that needs to be corrected.  Or maybe it just flew over their heads – part of the tobacco control job description is to avoid thinking critically, after all.

The discussion of how to counsel smokers about perhaps choosing THR is quite lucid and rational.  It reads like the recommendations that good pro-THR medics or real public health people would write.  It even includes the advice to warn smokers that the recommended products are not so satisfying as smoking, so need to be used differently (not in so many words, of course, but that is the upshot of it).

The recommendation that those who educate clinicians educate them about these recommendations is pretty paltry, but it is there.

There are even recommendations about advising smokers about strategies for “temporary abstinence”.  This is not explained, but it seems that it must refer to helping smokers deal with smoking place restrictions.  If so, this is a rather surprising move in the direction of good government – helping people be happier given the constraints they face, rather than trying to force their choices.  The anti-smoking activists, if they actually think through what this implies, are not going to be happy about this; while they publicly justify place restrictions based on protecting bystanders from smoke, most of them clearly consider the fact that the restrictions can make smokers miserable to be a feature, not a bug. 

I wonder if on this point NICE may actually have been a little too respectful of people’s choices.  They failed to push the recommendation to communicate “now that you have discovered that these products are appealing when you have to deal with place restrictions, you should consider using them all the time.”  There is one buried sentence on this theme, but it is a missed opportunity that they did not make the point more clearly.  (Of course, perhaps they recognized that few smokers with these motives are going to find their licensed products to be so satisfying that they might want to use them all the time.)

Manufacturers are encouraged to include the THR information on their packaging and such.  Of course, this only applies to licensed products and does not change any laws, so unapproved claims about “unapproved” products are still, well, unapproved.

Criticisms of the narrow-mindedness
As noted above, the Guidance is restricted to “licensed products” and this provoked a lot of ire when it came out.  The closest they come to acknowledging the reality that exists beyond their licensing paywall is, “little direct evidence is available on the effectiveness, quality and safety of nicotine-containing products that are not regulated by the MHRA. However, they are expected to be less harmful than tobacco.”  While better than denying that they are less harmful, this is still a lie at a couple levels:  There is a lot of evidence about effectiveness, quality, and safety.  (Perhaps they were trying to hide behind the word “direct”, but since it is basically meaningless, there is no refuge there.)  These products are known (not “expect to be”) a lot less harmful than smoking, but not less harmful than “tobacco”, a category that clearly includes smokeless products that are just a low-risk.  (Indeed, in the minds of many, all the products mentioned here, when used on a long term basis for non-medical reasons, form the category “tobacco”, though that does not tend to be the UK way of thinking).   Just because you cannot buy low-risk smokeless tobacco in the UK is no excuse for pretending that it does not exist.  Still, this cryptically acknowledges that e-cigarettes, despite the government not officially granting people permission to use them, are low risk.

The Guidance goes so far as to say, “Electronic cigarettes are becoming increasingly popular. If the MHRA starts regulating them, or there is positive new evidence of effectiveness, …this guidance should be considered for a rapid update.”  Of course, if e-cigarettes are MHRA-licensed products, the only thing that needs to be updated is adding them to the list of “approved” product types.  Nothing else would need to change.

There are probably a hundred incorrect specific claims in the document, but I am not going to go into that level of detail.  The count goes up to several hundred if you include their “review of the evidence” back-matter; that section is bad enough that it makes me wonder how the recommendations turned out as good as they are.  Indeed, it appears that the authors pretty much used that section for window-dressing and were motivated by better general knowledge, which is a good thing.

A more subtle failure is the refusal to acknowledge how we know that smoke-free tobacco/nicotine products are low risk.  In their desperate attempt to avoid even recognizing the existence of smokeless tobacco, they attribute the knowledge that “licensed” products are low risk to the paltry data about long-term use of those products.  That level of evidence about, say, e-cigarettes would be derided by those who like the medicines as entirely inadequate.  The reason we know that the level of risk caused by smoke-free nicotine is indistinguishable from harmless is the extensive research that shows that smokeless tobacco has no measurable risks.  It is that knowledge that NRT makers cite when they try to argue that their products are low risk.  Too bad NICE could not be as honest.

The recommendations also fail because they think that tobacco harm reduction is really just about harm reduction (see my recent post).  They clearly communicate that the use of low-risk products is always the second-best choice, behind abstinence, and fail to explicitly acknowledge the advantages compared to abstinence.  This was inevitable, of course, but just because it is not surprising does not mean it is not wrong.  The Guidance acknowledges that some smokers do not want to become abstinent, and thereby implicitly acknowledges that there must be some disadvantages to abstinence.  But this is never recognized.  But on the glass-half-full side, those of us inclined to do so can point out that NICE acknowledges that there are benefits from tobacco use.  

Interestingly, the only place where they mention the favorite bogeyman of anti-THR activism, the possibility that some people who would have quit smoking will only reduce if there is any encouragement to do so, is in the cost-effectiveness analysis discussion.  While engineered worries about this in the popular discourse are 90% trumped-up lies, it seems like this should have gotten a bit of explicit attention in the substantive part of the Guidance.  Yes, their recommendations repeatedly include the observation that switching completely or otherwise quitting smoking is much healthier than just reducing, but I would have really liked to have seen some suggested model advice about how to say, “since you are cutting down by using an alternative, you should really consider finishing the switch because any smoking is a lot less healthy than none”.

As an aside from the details of tobacco policy, putting on my political scientist or ethicist hat:  A disturbing theme in the research section of the Guidance (in common with a lot of government activism) is the notion that government should think like a business.  Cost-effectiveness type analysis is great (it is at the core of what I taught for years), but it needs to consider allsocial costs and benefits.  For a business, something is a good move if it reduces expenditures or increases revenue (or, more precisely, improves the net of those two added together), regardless of its other impacts on the world, and that is exactly why a lot of people, including a large portion of “public health” types, despise business and use “profit” as a rough synonym for “evil”.  But that is what businesses are supposed to do, more or less.  However, it is not what government is supposed to do.  When the government starts trying to maximize its profits, we are all in trouble – that is what feudal and warlord governments do.

Yet the analysis of costs and benefits focuses totally on government net profits.  There is no apparent acknowledgement of the costs and benefits to the product users, by far the most significant costs and benefits.  This is rather odd since the substance of the Guidance acknowledges that people might prefer switching to abstinence – that is, there is a recognition of the real costs and benefits built in.  At least that makes it much better than the usual “analysis” that bludgeoning smokers into abstinence, even though it makes them unhappy, is “cost-effective”.  In some ways, though, that makes the business balance-sheet analysis even more pathetic.

Besides, should the government require cost-effectiveness at all before deciding it should tell its citizens the truth about something very important to them?  Should the government lie if it looks like it would save money?  (Yes, I know the answer is that they will often do just that.  But they certainly should not.)

Concluding thoughts
I really think that this Guidance is good for the promotion of THR – not as good as it could be, obviously, but not harmful.  Because there are no affirmative arguments against any aspect of THR, it is difficult to see the harm.

The statement that smokers who reduce but do not quit entirely (or, more precisely have not quit entirely, since they still might do so) get some health benefits flatly contradicts currently popular anti-THR lies.  The Guidance agrees with the point that the experts have long been making, that in many cases reducing represents a transition, and in any case the much demonized “dual use” is better than just smoking.  Of course, the anti-THR activists (who do not actually consider evidence, but rather start with their conclusion and then concoct rationalizations for it) can still retreat to their claim that all those people who have cut down would have quit already if they were not taken in by the allure of alternative products, but that is so clearly silly that it becomes much harder for them to defend their rationalization.

It is also gratifying to see the repeated use of language that refers to preferences about tobacco use, rather than suggesting it is some kind of volition-free tic.  There are a few appearances of the “cannot quit” type language, but mostly the languages is about what smokers want – e.g., “may want to stop smoking without necessarily giving up nicotine”, “want to reduce the amount they smoke”, or “may not be able (or do not want) to stop smoking in one step”.  (Yes, they still throw in a bit of the “cannot” language, but at least they still recognize the relevance of “want”).

The implicit acknowledgments of both the use of non-“licensed” products and of the downsides of abstinence are quite useful.  Those of us who want to make points about other products and motives can cite this Guidance and just let the extremists sputter their vapid protests about it just being about medicines.

Tobacco harm reduction, it’s not just about harm reduction